PARIS: Euronext wheat made fresh gains on Tuesday, reaching levels last seen in 2008, as early worries about next year's harvest in North America kept attention on tightening global supplies.
A weaker euro and a brisk pace of European exports also underpinned Euronext as traders watched to see if major importers Egypt and Algeria would return soon with tenders. December milling wheat settled up 2.75 euros, or 1.0%, at 284.75 euros ($331.39) a tonne, after rising in late trade to 285.00 euros, the highest front-month price since March 2008. March futures, now the most active position on Paris-based Euronext, rose as high as 280.00 euros, also the loftiest level for a second-month price since March 2008. Traders were starting to see potential for Euronext to test its all-time peak of 300 euros, set in September 2007.
A rally in US hard wheat futures also lent support to Euronext. A lower-than-expected rating of recently sown US winter wheat added to initial concern about the 2022 harvest potential due to tensions in fertiliser supply and projections for persisting drought in some North American wheat belts.
Weekly European Union export data showed soft wheat exports were running about a quarter above the year-earlier level. However, incomplete data for France from August means this season's pace is likely to be even higher. A steady run of tenders has underscored demand and some importers are expected to continue entering the market after limiting purchases in recent weeks.
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